Scarcity, Opp Cost & PPC

What is the most basic problem of economics?

• Scarcity
• Allocation
• Productivity
• Specialization

What is it called when you choose between two possible uses for a resource, giving up one alternative for another?

• Trade Offs
• Real Costs
• Building materials
• Trading spaces

A popular bakery has only a few ingredients left to make their products.  They could bake muffins or cookies, but they can’t make both.  The bakers decide to make cookies for their customers.  What is the opportunity cost of their decision?

• muffins 
• cookies 

Joe was shopping for a truck. He has looked at similarly priced Ford, Chevrolet, Toyota, and
Ram models. After a lot of thought, he narrowed it down to either the Ford or the Chevrolet.
He selected the Ford because he liked the interior a little better. What was his opportunity
cost?

• Ford
• Chevrolet
• Toyota
• Ram

Trade-offs create this. It is the thing that you DO NOT chose. It is what you have to give up in order to get something else. It is your 2nd BEST ALTERNATIVE. 

• Trade-offs
• Opportunity Cost
• Scarcity
• Production Possibilities Curve

Opportunity Cost is best defined as

• the value of the next best alternative that is given up due to the choice you made 
• The price you pay to purchase something 
• The benefit you gain by making a decision 
• The amount of debt you take on by making a decision 

What is the production possibilities curve?

• a graph that shows how much an economy can produce between 2 goods
• how much money something is
• the opportunity one has to give up in order to gain something else
• land, labor, capital, entrepreneurs

If a point lies on the curve this means the company is being efficient. If a point lies inside the curve, this tells the company what?

• They are being over efficient
• They are not efficient
• It is impossible
• None of the above

SSEF1(d) The opportunity cost of shifting production from "Point E" to "Point C" would be:

• 30 cans of cola
• 30 chocolate bars
• 70 cans of soda
• 20 chocolate bars

If a natural disaster strikes, where would a production possibilities curve most likely shift

• No shift

• inward (as seen in Case 1)

• outward (as seen in Case 2)

• all of the above